Financial terms of the transaction were not disclosed. The companies said on Monday that the partnership would combine FSI’s access to Italy’s mid-market businesses with Temasek’s sector expertise and international network, with a focus on helping companies expand into new markets.
FSI manages about €5 billion and concentrates on growth investments in mid-sized businesses. Temasek has previously invested in FSI funds and will make further commitments to future vehicles, including FSI Scale-up Capital Solutions, a fund aimed at high-growth small and medium-sized enterprises.
Nagi Hamiyeh, president of Temasek Global Investments, said Italy was “an integral part” of Temasek’s European strategy. He said the Singapore investor had built its portfolio and relationships in the country over more than a decade, with the pace of investment accelerating in the past few years.
“Our partnership with FSI extends this commitment to the mid-market,” Hamiyeh said, adding that Temasek could use its sector capabilities and global networks to support Italian companies seeking international expansion and long-term growth.
The transaction builds on a relationship that began with Temasek’s investment in FSI funds in 2018. Temasek was an investor in FSI I, which closed in 2019, and FSI II, which closed in 2024. It is also participating in the Scale-up Capital Solutions vehicle launched this year.
FSI’s website says its flagship FSI I and FSI II funds have commitments of €1.4 billion and €1.6 billion respectively, while Scale-up Capital Solutions extends its investment strategy into the lower mid-market. The new vehicle is targeting businesses with growth potential, including companies seeking capital for expansion, acquisitions or international development.
Maurizio Tamagnini, FSI’s chief executive and managing partner, said Temasek had been a founding investor in the firm’s funds and that the two teams had worked together beyond those commitments to identify opportunities across Italian companies of different sizes.
“Today’s step therefore builds on a shared investment culture, experience and deep mutual trust between the leadership of the two institutions,” Tamagnini said. He described FSI as a channel connecting global institutional capital with Italy’s small and medium-sized businesses.
Temasek’s investment also increases its exposure to Italy, where it has invested for more than a decade. Its holdings include interests in luxury groups Ermenegildo Zegna, Golden Goose and Moncler, giving the Singapore company an established presence in one of Italy’s prominent consumer sectors.
The group has also been increasing allocations across Europe, the Middle East and Africa. It aims to invest between €14 billion and €17 billion in the region by 2029 and deployed about €13 billion there during the two financial years ended March 31, 2026.
Temasek reported a net portfolio value of S$518 billion for the year ended March 31, 2026. The company is wholly owned by Singapore’s Minister for Finance, but operates commercially and makes investment decisions independently of the government, according to Singapore’s Ministry of Finance and Temasek’s governance framework.
For FSI, the investment brings a major global institutional investor directly into its management company while preserving the firm’s focus on Italian businesses. FSI says its team has invested more than €3 billion in 25 companies over 15 years and completed more than 50 acquisitions.
Temasek’s move does not give it control of FSI’s management company. The investment is structured as a minority holding, while the additional fund commitments place capital alongside other institutional investors. The arrangement expands the relationship at both the management-company and investment-fund levels without altering FSI’s investment mandate.
Its investment model targets businesses where fresh equity and strategic support can finance expansion without relying primarily on leverage. The firm identifies family-owned companies, fragmented domestic industries and businesses with limited access to capital markets among the areas where it sees opportunities.
Follow Arabian Post
Select Arabian Post as your preferred source on Google and MSN News for trusted business news and Arab politics and updates.
